Budget Highlight 2020-21 (Brings perk for the Middle class & Farmers )

Budget for the FY 2020-21 is presented on 1.2.2020 based on the following three key points where govt. expects nominal growth in GDP :

1.     A.  Aspirational India- Better health, education & Better  Job opportunity.

2.      B. Economic Development- With motto Sbka sath sabka Vikas-More attention on more privatization.

3.      C. Caring Society- About ensuring better Social securities to the needy people

Key Highlights.

• Reducing the corporate tax rate for the new company to 15% & for existing Manufacturing companies at 22%. (Lowest in the world)

• The new simplified Income tax regime will be introduced at a reduced rate for the simplification after forgoing of deduction and curbing out the applicable exemptions.   Applicable rate on Individuals as follows: 

Annual Income/ (Rs.)	Old regime with Deduction (rate of tax on Slab)	Optional New regime without any Deduction (Rate of tax Slab)
0-2,50,000	Nil	Nil
2,50,001-5,00,000	5%	5%
500001-750000	20%	10%
750001-10,00,000	20%	15%
10,0001-12,50,000	30%	20%
12,50,001-15,00,000	30%	25%
15,00,001 & Above	30%	30%

•       The company not required to pay Dividend Distribution Tax. Income will be taxed in the hands of receipt itself at the applicable rate to them.
• The concessional corporate tax rate for New manufacturing for power generation company is now 15% only.
• 100% Exemption on the investment made in the infrastructure sector for any interest, capital gain & dividend for non-residents Investors.
• Withholding tax will lower rate @ 5% under section 194LD to the int payment made on the municipal bond.
• Reduced rate of withholding tax now 4% earlier 5% for the listed bonds.
• New scheme  Vivad se Vishwas is introduced. In this scheme, if Taxpayer having Appeals pending at any Level under Income tax law will get a complete waiver of Intrest & penalty if he deposited the disputed amount by 31st march 2020. however, this scheme will available till 30th Jun 2020.  With the payment of some additional amount alongside disputed amount by 30.06.2020.
• 1. SMS based filing for the GSTR-3B Nil returns under GST.

Remaining Summary:

      
A.Govt Committed to 6.11 crore farmers FASAL BIMA Yojana govt committed to making farmer income double by 2022.

B.      Action Points for Farmers & Animal Husbandry

a.       Encourage that stat govt the follow the model laws which are already passed by govt for farmers.

b.      Govt proposing to work on 101 water-stressed  District.

c.       Remove farmer dependence on Diesel kerosene oil  &  move to Solar energy, govt. will installed Solar pump resultant 16 Lakhs farmer will enable to connect to the solar power grid instead earlier of normal water grid on their barren land.

d.      Increase the balanced use of fertilizers.main focus on Limited uses of chemical fertilizers.

e.      NABARD will GEO tagged the Aggricukutere warehouse. Govt will  provide Viability GAP funding.

f.        Village Storage scheme will be implemented.

g.       Women Self group will be formed for the help women “ Dan Laxmi Yojna” will be introduced.

h.      Hottiliculutre sector with current produce 311 m tonne govt will focus on better export by the focus on one product one district to expended the production

i.         Krishi Udan Yojana will be introduced.

j.        Kishan credit yojana (PMKY )-  Rs. 15 Lakhs crore allotted for same to provide funding to the farmers.

k.       Focus on making Milk produce double by 2025.

l.         Under Pundit Din Dyal Antodoya Yojana  Rs. 58 lakhs will be provided to Self Help Groups s that their contribution will be increased.

For the Education Sector

New education policy will be introduced soon.  Govt allotted Rs. 99,300 Crore on the education sector.

I.                    150 new Higher education university will be opened by March 2020.

II.                  Study in India program  will be promoted

III.         Purposed 1 medical institute to be opened at each District-level hospitals. Govt will  fund for the same      
IV.          FDI will be introduced in the Education sector.

For Health Sector

I. Govt committed to end TB by the end of 2025.

II. Health sector allotted Rs. 69 Thousand crores in Prdha mantra Jan arogya Yojna.

III.  Rs. 3.6 lacs crore allotted for providing clean pipeline water to the household.


Economic Development segment

1.            Rs. 27,300 crore for development of the domestic industry.

2.            Rs. 100 lacs crore will be spent on the infrastructure sector.

3.            Govt. focused on the manufacturing sector which will increase the job opportunity for the youth.

4.            National logistics policy will e introduced.

5.            Govt. focus on growing waterways logistics.

6.            Solar panels will be set up at the vacant land of Indian railways.

7.            A prepaid smart meter will be installed within the next 3 years to every household for better transparency of consumption 7 charges (Rs. 22000 crores allotted to the Power & Gas segment).

8.            Govt. focused on making the India biggest Data park centre.

9.            Genetic mapping will be done for each citizen of India for better health mapping.

10.        Bharat Net Program will be introduced.

11.        Govt allocates Rs.100 thousand crores so that fibre optic cable will be installed to connect  100 lakhs villages panchayat to the internet.

12.       Rs. 2500 crore to the tourism sector for the development of the sector.

13.        Govt Allotted 3000 crore for the Kaushal Vikash Yojana.

14.     Rs. 4400 crore allotted for the fresh & pollution-free air for the large cities of India.

Tax Administration

1.                   Taxpayer charter will be formed. It will become a part of our statute to ensure that Taxpayer that they will be protected from any Harrshment for paying Taxes.

2.                   Companies Act Amendment purposed to Review the Criminal Liability imposed under the Act (Purpose is to remove the harassment ).

3.                   The national recruitment agency will form for higher personnel for Tax processing. The requirement will be based on CET  designed by the Recruitment Agency.

4.                   India will host the G20 presidency in the year 2022. Rs.  100 crore allotted for the same.

5.                   Strict Laws will be formed for the Tax evader.

6.                   Allotted 5,900 Crores for the growth of newly formed union territory Ladakh.

7.                   Insurance for the Bank deposits increased to Rs. 5 Lakh from earlier Rs. 1 Lakh.

8.                   Subordinated debt for the entrepreneur of MSME’s will be provided it provides cash flows to MSME.

9.                   Govt. will sell out their ownership in IDBI Bank.

10.       Govt. allowance to sell their major stake in LIC.

11.       Stake in LIC will be sold through IPO.


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~ Stay tuned for the detailed analysis & its Impact.